This Billionaire Governor Taxed the Rich and Increased the Minimum Wage — Now, His State’s Economy Is One of the Best in the Country

This Billionaire Governor Taxed the Rich and Increased the Minimum Wage — Now, His State’s Economy Is One of the Best in the Country

"When he took office in January of 2011, Minnesota governor Mark Dayton inherited a $6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota’s first true fiscally-conservative governor in modern history."

"During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly — a tax increase of $2.1 billion. He’s also agreed to raise Minnesota’s minimum wage to $9.50 an hour by 2018, and passed a state law guaranteeing equal pay for women. Republicans like state representative Mark Uglem warned against Gov. Dayton’s tax increases, saying, “The job creators, the big corporations, the small corporations, they will leave. It’s all dollars and sense to them.”

"By late 2013, Minnesota’s private sector job growth exceeded pre-recession levels, and the state’s economy was the fifth fastest-growing in the United States. Forbes even ranked Minnesota the ninth best state for business (Scott Walker’s “Open For Business” Wisconsin came in at a distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton’s tax cuts, 6,230 more Minnesotans filed in the top income tax bracket in 2013, just one year after Dayton’s tax increases went through. As of January 2015, Minnesota has a $1 billion budget surplus, and Gov. Dayton has pledged to reinvest more than one third of that money into public schools."

But, but... Democrat Libtards destroy the economy of any US States they govern. I mean, that's the Republican/Teabagger/Conservative mantra. They can't be wrong, and misleading us with lies, distorted statistics, and other tricks, can they? Impossible!

I'm all for high-income people paying higher taxes. Having benefited from the current tax system for years, I know that it is skewed in favor of high earners. The status quo needs to change. "To whomever much is given, of whom will much be required; and to whom much was entrusted, of him more will be asked."

metta saidThis Billionaire Governor Taxed the Rich and Increased the Minimum Wage — Now, His State’s Economy Is One of the Best in the Country

"When he took office in January of 2011, Minnesota governor Mark Dayton inherited a $6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota’s first true fiscally-conservative governor in modern history."

"During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly — a tax increase of $2.1 billion. He’s also agreed to raise Minnesota’s minimum wage to $9.50 an hour by 2018, and passed a state law guaranteeing equal pay for women. Republicans like state representative Mark Uglem warned against Gov. Dayton’s tax increases, saying, “The job creators, the big corporations, the small corporations, they will leave. It’s all dollars and sense to them.”

"By late 2013, Minnesota’s private sector job growth exceeded pre-recession levels, and the state’s economy was the fifth fastest-growing in the United States. Forbes even ranked Minnesota the ninth best state for business (Scott Walker’s “Open For Business” Wisconsin came in at a distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton’s tax cuts, 6,230 more Minnesotans filed in the top income tax bracket in 2013, just one year after Dayton’s tax increases went through. As of January 2015, Minnesota has a $1 billion budget surplus, and Gov. Dayton has pledged to reinvest more than one third of that money into public schools."

This billionaire governor inherited his wealth. His successor will need that state surplus to compensate for high income people now fleeing the state in droves.

Income flees Minnesota after big tax increase:

Recently, studies have found that over $2 billion in taxable income has left Minnesota over the last couple of years. Our state is essentially hemorrhaging wealth, and large employers are going elsewhere to find better business climates.

According to research done by Twin Cities Business, in the last two years about 3,099 taxpayers have left the state, taking approximately $2.1 billion in taxable income with them. The same study suggests that if this trend continues for even the next five years, over 12,000 earners with a combined net worth estimated at $65 billion, will migrate out of Minnesota, resulting in a loss of $5.2 billion in taxable income.

Why has this started happening in the last couple of years? Why are top wage earners and their businesses moving to other states, taking their incomes out of Minnesota’s economy, and why has this trend only appeared in the last couple of years?

The answer to these questions becomes pretty clear when we look at tax increases that were instituted in 2013. The primary tax increase from 2013 that has led to the mass-exodus of affluent Minnesotans is an income tax increase of 25 percent on our state’s highest earners. Along with this increase, the bar for the highest tax bracket was lowered to $154,950 or more for individuals per year, and $258,260 or more per household. Not only were many Minnesotans bumped into the top tax bracket, they were welcomed with substantial rate increase on top of the already substantial highest earner income tax rate.

Since this tax increase in 2013, more and more Minnesotans have decided enough is enough. Couple this with our exceptionally high business tax rates, and Minnesota becomes a much less attractive option for people looking to start a business, or for existing businesses deciding to whether or not to remain in our state. Often, we lose out to other states with lower — or no — income taxes, and more manageable business taxes. This means less job creation and less opportunity for Minnesotans looking for gainful employment.

The idea that we can simply raise tax rates on the “wealthy” to raise tax revenue, without it affecting the rest of the state, just isn’t true. These top earners employ significant segments of Minnesotans in lower tax brackets, and when they leave, they often take their businesses and jobs with them.

metta saidThis Billionaire Governor Taxed the Rich and Increased the Minimum Wage — Now, His State’s Economy Is One of the Best in the Country

"When he took office in January of 2011, Minnesota governor Mark Dayton inherited a $6.2 billion budget deficit and a 7 percent unemployment rate from his predecessor, Tim Pawlenty, the soon-forgotten Republican candidate for the presidency who called himself Minnesota’s first true fiscally-conservative governor in modern history."

"During his first four years in office, Gov. Dayton raised the state income tax from 7.85 to 9.85 percent on individuals earning over $150,000, and on couples earning over $250,000 when filing jointly — a tax increase of $2.1 billion. He’s also agreed to raise Minnesota’s minimum wage to $9.50 an hour by 2018, and passed a state law guaranteeing equal pay for women. Republicans like state representative Mark Uglem warned against Gov. Dayton’s tax increases, saying, “The job creators, the big corporations, the small corporations, they will leave. It’s all dollars and sense to them.”

"By late 2013, Minnesota’s private sector job growth exceeded pre-recession levels, and the state’s economy was the fifth fastest-growing in the United States. Forbes even ranked Minnesota the ninth best state for business (Scott Walker’s “Open For Business” Wisconsin came in at a distant #32 on the same list). Despite the fearmongering over businesses fleeing from Dayton’s tax cuts, 6,230 more Minnesotans filed in the top income tax bracket in 2013, just one year after Dayton’s tax increases went through. As of January 2015, Minnesota has a $1 billion budget surplus, and Gov. Dayton has pledged to reinvest more than one third of that money into public schools."

this really only tells part of the story and is indicative of the "crap" we are fed daily by people who call themselves journalists

minnesota has always been a very progressive state and, while im not sure it still holds the title, did have 1 of the highest concentrations of fortune 500 companies of any state in the nation

those companies have always stepped up to support the state in any way they can - its part of the culture in minnesota

if there is anyone to thank for their current prosperity it is the federal reserve who, thru the various phases of quantitative easing, created a weaker dollar which accelerated the exports of all the multi national companies headquartered there

the fact that the nation now has an accumulated debt exceeding $18 trillion dollars has only helped matters more - keep in mind that money has to go somewhere!!

no politician (on either side of the spectrum) has any right to take credit for creating jobs, and if they do, and if u believe them, u are a fool - sorry but no nice way to say it!!

interesting that the article seems a day late and more than a few dollars short - with the rising dollar and economic weakness around the globe this will likely change the economic fortunes of the state over the next couple of years and it is quite likely they will be in worse shape than when they started

that is if they havent been very careful in their committed spending relative to their sustained tax receipts - we havent seen any politician that im aware of in recent memory capable of that

time will tell on all of it - trees dont grow to the sky - not even in minnesota

Art_Deco saidBut, but... Democrat Libtards destroy the economy of any US States they govern. I mean, that's the Republican/Teabagger/Conservative mantra. They can't be wrong, and misleading us with lies, distorted statistics, and other tricks, can they? Impossible!

The biggest chunk of the money is a carryover from last year — more than $500 million lawmakers didn’t know about in this year’s session.

This billionaire governor inherited his wealth. His successor will need that state surplus to compensate for high income people now fleeing the state in droves.

Income flees Minnesota after big tax increase:

Recently, studies have found that over $2 billion in taxable income has left Minnesota over the last couple of years. Our state is essentially hemorrhaging wealth, and large employers are going elsewhere to find better business climates.

According to research done by Twin Cities Business, in the last two years about 3,099 taxpayers have left the state, taking approximately $2.1 billion in taxable income with them. The same study suggests that if this trend continues for even the next five years, over 12,000 earners with a combined net worth estimated at $65 billion, will migrate out of Minnesota, resulting in a loss of $5.2 billion in taxable income.

Why has this started happening in the last couple of years? Why are top wage earners and their businesses moving to other states, taking their incomes out of Minnesota’s economy, and why has this trend only appeared in the last couple of years?

The answer to these questions becomes pretty clear when we look at tax increases that were instituted in 2013. The primary tax increase from 2013 that has led to the mass-exodus of affluent Minnesotans is an income tax increase of 25 percent on our state’s highest earners. Along with this increase, the bar for the highest tax bracket was lowered to $154,950 or more for individuals per year, and $258,260 or more per household. Not only were many Minnesotans bumped into the top tax bracket, they were welcomed with substantial rate increase on top of the already substantial highest earner income tax rate.

Since this tax increase in 2013, more and more Minnesotans have decided enough is enough. Couple this with our exceptionally high business tax rates, and Minnesota becomes a much less attractive option for people looking to start a business, or for existing businesses deciding to whether or not to remain in our state. Often, we lose out to other states with lower — or no — income taxes, and more manageable business taxes. This means less job creation and less opportunity for Minnesotans looking for gainful employment.

The idea that we can simply raise tax rates on the “wealthy” to raise tax revenue, without it affecting the rest of the state, just isn’t true. These top earners employ significant segments of Minnesotans in lower tax brackets, and when they leave, they often take their businesses and jobs with them.

If raising the minimum wage is the solution to income equality, why didn't Hillary have Walmart do it when she was on the Board of Directors.

If high taxes are so successful, why did a New Jersey Billionaire just leave NJ to live in Florida. Now NJ has a $140 million dollar budget deficit due to a single taxpayer leaving.

You're all kidding yourselves if you think this doesn't happen regardless. Corporations and entitled rich people will always do what they can to give back as little as possible to the systems from which they reap benefits. Let's stop pretending that having real tax laws is driving these businesses and people to hide their money in other places.

The argument against fairly taxing the rich is about as dumb as when people argue that gun control laws shouldn't exist because "people will just find ways to get guns anyway".

The cities that did the best (smallest increase in unemployment) during the 07-09 crisis where those that had lots of small business that where prepared to keep staff on. Small businesses doing business with each other and loyal locals, rather than big business the pulled their horns in to keep their quarterly Wall Street reporting looking as good as possible.

This article came out a few weeks after the one you quote, I found it interesting as well, and a bit more balanced, you know, to give this topic more balance as well...enjoyhttps://fee.org/articles/minnesota-mythbusting/

kind of validates my long held suspicions that everything we read anymore is suspect - if only we had the time to research and determine facts before jumping to all kinds of conclusions that are rooted in taking "sides"

its a disturbing trend in our society at large

journalism has morphed into commentary right before our eyes and seems to be going right past everyones radar

its a downside risk of the internet and, on a macro level, carry's a warning to all of us - i wish i had a better feeling that that warning will be paid attention to

The USA is well into many decades of tax cuts, and - no matter who controls Congress or the White House - we've only seen one momentary upward tick on the above-noted topics. Rather ironically during the Clinton Whitehouse and a Republican Congress. But we also know how that ended.... the dotCom bust of 2001, a slide into an unnecessary war, etc. Kind of supports the old saying - no good deed will go unpunished!

For those who claim government should be run like a business - can you show us one governmental budget (city, county, state, or federal) where there is a profit/surplus at the end? The first Republican who offers such a budget will be the first to put her/his money where her/his mouth is. Until then, it's all a bunch of hot air and lies. Remember, businesses budget to make a profit - and to claim governments should be run as such leaves you only one type of ink at the end of your ledger - not red or $0 - black ink only, please.

something happens to these people when they get into office and they respond in the same way - which could, possibly, suggest we have gone past the tipping point??

it is a fallacy to say clinton had a balanced budget - even that was smoke and mirrors from what i have read on the subject - a combination of transferring social security surplus contributions into the general fund and other accounting trickery made the budget appear to be balanced when, in fact, it was far from it

it didnt help when congress made the assumption that tax receipts from capital gains during the skyrocketing stock market of the late 1990's would go on forever and continued to spend like drunken sailors

we certainly did see where that got us

at this moment it would appear we are, in fact, past the tipping point and will never be able to repay the debt

the only thing i can determine that is saving us is that the u.s. dollar remains as the reserve currency to the world

i am forever amazed this is rarely discussed and most believe it will always be that way - and perhaps it will

certainly we are the best of the worst in that category as far as the world is concerned

if reserve currency should change (and it has in history) the country will have to be run like a business whether it likes it or not - and frighteningly we will not be calling the shots

Art_Deco saidBut, but... Democrat Libtards destroy the economy of any US States they govern. I mean, that's the Republican/Teabagger/Conservative mantra. They can't be wrong, and misleading us with lies, distorted statistics, and other tricks, can they? Impossible!

California has Democrat Governor & Democrat super majority congress. California run by Democrats is 7th largest economy in world. Businesses like Google, Yahoo, Facebook, Twitter etc know if they want their businesses to be successful turn to Liberals, not retard Republicans in Tennessee or Kansas.

If we want our air, food & WATER poisoned we will turn to GOP for that!

Art_Deco saidBut, but... Democrat Libtards destroy the economy of any US States they govern. I mean, that's the Republican/Teabagger/Conservative mantra. They can't be wrong, and misleading us with lies, distorted statistics, and other tricks, can they? Impossible!

California has Democrat Governor & Democrat super majority congress. California run by Democrats is 7th largest economy in world. Businesses like Google, Yahoo, Facebook, Twitter etc know if they want their businesses to be successful turn to Liberals, not retard Republicans in Tennessee or Kansas.

If we want our air, food & WATER poisoned we will turn to GOP for that!

Right wing is ALWAYS wrong!

Left wing is always tax and spend. Left wing is total control over the people, look at Venezuela. Democrats destroyed most older northern US cities with their 50+ years of monolithic rule in city hall, look at Detroit and Flint.

Art_Deco saidBut, but... Democrat Libtards destroy the economy of any US States they govern. I mean, that's the Republican/Teabagger/Conservative mantra. They can't be wrong, and misleading us with lies, distorted statistics, and other tricks, can they? Impossible!

California has Democrat Governor & Democrat super majority congress. California run by Democrats is 7th largest economy in world. Businesses like Google, Yahoo, Facebook, Twitter etc know if they want their businesses to be successful turn to Liberals, not retard Republicans in Tennessee or Kansas.

If we want our air, food & WATER poisoned we will turn to GOP for that!

Art_Deco saidBut, but... Democrat Libtards destroy the economy of any US States they govern. I mean, that's the Republican/Teabagger/Conservative mantra. They can't be wrong, and misleading us with lies, distorted statistics, and other tricks, can they? Impossible!

California has Democrat Governor & Democrat super majority congress. California run by Democrats is 7th largest economy in world. Businesses like Google, Yahoo, Facebook, Twitter etc know if they want their businesses to be successful turn to Liberals, not retard Republicans in Tennessee or Kansas.

If we want our air, food & WATER poisoned we will turn to GOP for that!

Right wing is ALWAYS wrong!

I will let Greece, Cuba, North Korea and Venezuela know. haha.

Don't forget all the older northern US cities that were run into the sewer by urban democrats.